Bond Definitions - Bond Definitions 1 accrued interest...

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Bond Definitions 1 accrued interest interest that accumulates between recent payments and sale of the bond Accrued interest = coupon payment which is the predetermined period of payment that goes to the bond holder X (amount of days since last coupons payment / predetermined time between payments) 2 Agency securitites secuitites issued by government sponsored corporations These securities are exempt from the Securitites and Exchange Commission (SEC) 3 Ask Price (security purchase) price which an investor will pay a dealer for a security 4 Asset Backed Securities specific assest are pledged as collateral for a loan Mortgage-backed bonds are the oldest type 5 Balloon-Payment Bond Bond with a terinal paymet at maturity which is larger than any intermediate payments 6 Banker’s Acceptance a vehicle that facilitates short term loans particularly between importers and investors. Bankers accept the responsibility of repaying the loan The liability assumed by the bank is its acceptanc liability 7 Basis Points Smallest measure in quoting yields on bonds and notes One basis point = 0.01% of yield 10.67% to 11.57% would be a move of 90 basis points 8 Bid Price (security sale) Price an investor will receive from a dealer 9 Bid ask Spread
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10 Bond Any interest bearing security or discounted government corporate security that obligates the issuer to pay the bond holder a specified sum of money in payments and principal at maturity Bearer bonds vs. Registered bonds Presents bond coupons owners names appears on records and is paid interest Secured bonds vs. Debenture bonds (unsecure)
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  • Fall '07
  • CURTIS,R.
  • convertible bonds Bond, Balloon-Payment Bond Bond, -public purpose bonds Tax

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